The NAB Quarterly Australian Residential Property Survey in the December quarter has turned slightly positive as the pace of national house price decline slows and rental growth accelerates.
- Moderating house prices declines and stronger rental growth saw NAB’s Residential Property Index move just back into positive territory
- National house prices are still falling, but the pace of decline slowed
- Rental growth is accelerating and forward expectations have been revised up
- There was a notable increase in first home buyer activity in the new property market, likely reflecting a more benign interest rate outlook and softer house prices. Investors and overseas buyers were also more prominent in this market
- Demand for new property from first home buyers, Australian investors and overseas buyers increased
- Demand for new residential property is expected to strengthen across all property types over the next 12 months
- Tight credit and housing affordability is still seen as major impediments to new building
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